After seeing a range-bound movement in early afternoon trade, key benchmark indices trimmed gains in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was up 111.76 points or 0.46% at 24,547.42. The 50-unit Nifty 50 index was currently up 30.15 points or 0.41% at 7,452.60. Gains in global stocks aided the upmove on the domestic bourses.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,786 shares gained and 646 shares fell. 125 shares were unchanged. The BSE Mid-Cap index was currently up 0.9%. The BSE Small-Cap index was currently up 1.51%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian shares edged higher on speculation that the Japan's central bank will increase its asset-purchase program at its meeting later this week, on 28-29 January 2016. US stocks ended sharply higher during the previous trading session on Friday, 22 January 2016, as oil futures surged and investors were encouraged by hints of potential central-bank stimulus in Europe and Japan. At a news conference after the conclusion of European Central Bank's (ECB) regular policy review, ECB President Mario Draghi signalled last week that the ECB governing council may provide more stimulus at its next meeting in March, noting that the outlook for inflation had weakened significantly.
Index heavyweight and housing finance major HDFC advanced 1.64% to Rs 1,176.80. The stock hit high of Rs 1,183.50 and low of Rs 1,156 so far during the day. HDFC after market hours on Friday, 22 January 2016, announced that the company has filed term sheet for issuing secured redeemable non-convertible debentures worth Rs 725 crore on private placement basis. The coupon rate on debentures is 8.6% per annum. The tenor of the debentures is three years and one month. The issue opens and closes on the same day on 27 January 2016. The proceeds would be utilized for financing/refinancing the housing finance business requirements of the company, HDFC said.
Metal and mining stocks gained on renewed buying. Vedanta (up 2.16%), JSW Steel (up 4.2%), Tata Steel (up 2.99%), Steel Authority of India (Sail) (up 1.51%), Hindustan Zinc (up 2.44%), Jindal Steel & Power (up 0.83%), Hindalco Industries (up 0.09%) and Hindustan Copper (up 1.62%) edged higher.
Vedanta (up 2.16%) and NMDC (up 1.8%) rose after iron-ore prices surged in global markets on Friday, 22 January 2016 on hopes of increased demand after media reports suggested that Brazilian miner Vale, the world's largest producer of iron-ore, was ordered by a local court on Thursday, 21 January 2016, to temporarily shut down its Port of Tubarao over alleged environmental breaches. Vedanta (formerly Sesa Sterlite) is a diversified natural resources company. NMDC is engaged in the mining of iron ore.
Coal India (up 1.57%), National Aluminium Company (Nalco) (up 1.6%), Bharat Heavy Electricals (Bhel) (up 0.65%) edged higher on reports the government has asked Bhel, Coal India, Nalco and NMDC to consider buyback of shares. The government is falling short in meeting its divestment target for the current fiscal year which is the reason why it has asked four leading public sector companies to consider buyback of shares, according to reports.
The government currently holds 63.06% stake in Bhel (as per shareholding pattern as on 31 December 2015). The government currently holds 79.65% stake in Coal India (as per shareholding pattern as on 30 September 2015). The government currently holds 80% stake in NMDC (as per shareholding pattern as on 30 September 2015). The government currently holds 80.93% stake in Nalco (as per shareholding pattern as on 31 December 2015).
Cement stocks gained. Ambuja Cements (up 2.64%) and ACC (up 0.89%), Shree Cement shed 0.65%.
UltraTech Cement rose 1.29%. The company announced after market hours on Friday, 22 January 2016, that the Supreme Court of India has allowed an appeal filed by the State of Rajasthan in a matter relating to transfer of mining lease in the name of the company's wholly-owned subsidiary viz. Gotan Lime Stone Khanij Udyog (GKUPL). Supreme Court has directed the State of Rajasthan to frame and notify its policy relating to transfer of mining lease within one month of receipt of the order and thereafter pass appropriate order in respect of the mining lease of GKUPL. Till such a decision is taken, status quo may be maintained. The supply from these mines was in addition to its supply from existing mines and other sources. The company's day to day operations will not be impacted.
Grasim Industries was up 0.22% at Rs 3,456.65. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Kwality rose 6.08% after net profit rose 3.54% to Rs 37.40 crore on 12.06% rise in net sales to Rs 1441.22 crore in Q3 December 2015 over Q3 December 2014. Kwality's EBITDA (earnings before interest, taxes, depreciation and amortization) rose 14.19% to Rs 97.44 crore in Q3 December 2015 over Q3 December 2014. The result was announced on Saturday, 23 January 2016.
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